Role of Islamic Banking during COVID-19 on Political and Financial Events: Application of Impulse Indicator Saturation

Ghouse, Ghulam; Aslam, Aribah; Bhatti, M. Ishaq

doi:10.3390/su132111619

Cited by 12 publications

(12 citation statements)

References 61 publications

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“…The main distinction between conventional institutions and MFIs is that the former is interest-based. At the same time, the latter is interest-free since the sharia prohibits the receiving and giving of any fixed, predetermined rate of return on financial transactions, or in other words, interest (El-Zoghbi and Tarazi 2013; Ghouse et al 2021;Mirzaei et al 2022). All the monotheistic religions prohibit interest due to its exploitative nature that creates inequality within society as it allows the lender to extract more wealth from vulnerable borrowers who may need to borrow money to meet their basic consumption requirements (El-Zoghbi and Tarazi 2013).…”

Section: Literature Reviewmentioning

confidence: 99%

Application of a distributed verification in Islamic microfinance institutions: a sustainable model

et al. 2022

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The literature gap in microfinance paradox of double bottom line (financial performance vs. outreach) has always been an interesting area of research. This paper proposes a theoretical model most suitable for Islamic Microfinance Institutions (MFIs) which enables Islamic MFIs’ to operate together with the existing financial models compliant with Islamic Shariah Law. This model is based on a distributed verification/decision-making process that might be realized (but not necessary) through blockchain. Among the available distributed verification techniques, blockchain technology is an attractive emerging computing paradigm due to its decentralized, immutable, shared, and secure data structure characteristics. This model proposes three significant propositions. First, sharing information through blockchain will allow a transparent network in MFI operations, which will raise confidence for donors resulting in a causal effect of a relatively lower profit rate to be charged by the MFIs. Second, the consensus mechanism will enable risk-sharing, a character of Islamic finance; thus, the MFIs will operate without any collateral for low-risk firms. Third, the double bottom line of MFIs' long-lasting paradox would be solved. As for practical implication of this proposed model, the causal impact of lower cost investment by the lenders would increase social welfare because of no collateral and no initial wealth requirement. The proposed model proposes a credit rationing approach where profit can be negative. No collateral will be used when calculating the creditworthiness of a borrower.

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Section: Literature Reviewmentioning

confidence: 99%

Application of a distributed verification in Islamic microfinance institutions: a sustainable model

et al. 2022

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“…Moreover, commonly the governments are unstable and always tend to fall, and a new government could be made without an election. Ultimately these structural changes affect the performance of stock markets (Ghouse et al 2021b;Irshad 2017).…”

Section: Literature Reviewmentioning

confidence: 99%

Impact of COVID-19, Political, and Financial Events on the Performance of Commercial Banking Sector

Ghouse

Bhatti

Shahid

2022

JRFM

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This paper employs a structural empirical model to gauge the possible effects of COVID-19, political and financial events on the returns and volatility of commercial banks. It observes that insured and run-prone uninsured depositors choose between differentiated commercial banks, which appears to be significantly impacted from the present pandemic, especially for the case of Pakistan’s commercial banking sector. The estimated volatility series for commercial banks is measured through the GARCH model, which explains the current financial and political distress for the case of shocks from COVID-19. We calibrate by Impulse Indicator Saturation (IIS) to detect the structural breaks formed by these events in the returns and volatility series of commercial banks. It is observed that the calibrated model possesses almost all financial events that have had a prominent impact on the returns and volatility series whereas two out of eighteen political events are unimpacted.

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“…Inclusive economic growth of any country is not possible without women contributing into human capital (Aslam & Shabbir, 2019;Ghouse et al, 2021;Aslam et al, 2021;. Nonetheless, it is obligatory to concede that whilst microfinance harbours substantial potential for facilitating women's empowerment and dropping violence in Pakistan (Adeel et al, 2023), it is not a panacea (Murphy, C., 2018, Shelar, K., 2020Niaz, M. U., & Iqbal, M., 2019).…”

Section: Introductionmentioning

confidence: 99%

Microfinance's Business Breakthrough for Women Empowerment

Sadia Naseem Naik,

Aribah Aslam,

M. Ishaq Bhatti

2024

JEBV

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We analyzed the vital role microfinance initiatives are playing towards their confidence and growth in undertaking business reducing the violence against women (VAW), resultantly women empowerment. We utilized data from the Women Economic & Social Well-being Survey of Punjab, with a specific focus on women aged 15 to 64 years. Our study employed the logit and probit modeling technique to find out the intricate interplay between microfinance and various socio-economic factors especially with regard to VAW. We explored the connections between microfinance, women’s economic empowerment through female employment and their wealth status, age, education, marital status, area of residence, elucidating their combined influence on the likelihood of occurrence of violence against women in Pakistan, with particular analysis of urban and population. The conclusions arrived at from this investigation not only add to the scholarly debate on gender economics and VAW but also equip the policymakers with considerable fresh insights, development strategies, and identification of organizations for advocating and steering enhancement in female employment, microfinance initiatives for women, financial assistance, and education for transformative initiatives of gender equality and reduction in VAW.

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Role of Islamic Banking during COVID-19 on Political and Financial Events: Application of Impulse Indicator Saturation

Cited by 12 publications

References 61 publications

Application of a distributed verification in Islamic microfinance institutions: a sustainable model

Application of a distributed verification in Islamic microfinance institutions: a sustainable model

Impact of COVID-19, Political, and Financial Events on the Performance of Commercial Banking Sector

Microfinance's Business Breakthrough for Women Empowerment

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